Retail: Focus On Core Competence Or Scarcity.

Spinning and weaving industry:

At present, the overall retail environment in China has not shown any signs of improvement, and terminal consumption has not recovered. However, judging from the overall operation of the apparel industry this year, there has been some signs of stabilization.

Judging from the fine molecular industry, after nearly 2~3 years of adjustment, some subdivision areas have shown signs of mild recovery, sporting goods,

The most representative.

At the same time, the popularization field includes

,

And so on, with the centralization of upstream suppliers' resources, the trend of market concentration has been more and more obvious. Leading brands with some core competence and leading in the forefront of mode innovation are rising rapidly.

Retail industry: the overall environment is still weak, and mode pformation is imperative.

Affected by the slowdown in macroeconomic growth, the terminal retail environment is still weak, for the vast majority.

In the future, we will continue to face the problem of mode pformation. Enterprises with strong attitude towards pformation and the forefront of pattern innovation in the forefront of the industry should give priority to attention. In the future, with the gradual pformation of the effect of pformation, there are still certain opportunities for development.

In addition, the reform of state-owned enterprises will also be an important development opportunity for retail enterprises in the future.

Brand clothing A, H valuation difference is significant, retail sector difference is not big.

From the perspective of brand clothing, the valuation level of A and H-share of clothing plate is different, which is related to the preference difference of brand clothing between Mainland and overseas market. Meanwhile, the differentiation factors of brand clothing enterprises in profitability growth, pformation and innovation are also important reasons for the difference of valuation.

For the retail sector, there is little difference in the overall valuation level, among which the A and H-share valuation of the general merchandise retail sector are relatively low, and the A shares are slightly higher than those of the retail sector, while the A and H-share valuation levels of the supermarket retail sector are relatively high and the two are basically the same. Besides, there is a certain gap between the A and gold jewelry and luxury goods sector A and H-share valuation level.

Investment recommendations: focus on core competence or relative scarcity.

A share investment recommendations: first, we recommend the leading industries with strong fundamentals and core competitiveness, such as Yonghui supermarket, Hai Lan home, nine Mu Wang, AOKANG international and other companies. Second, the relatively scarce varieties in the Hong Kong stock listed companies and the localized fine Domain company are also worthy of the attention. For example, the cosmetics of Shanghai Jahwa and the old jewelry companies in the jewelry industry. 3. With the original QFII quota allocated from Shanghai stock market to Shenzhen market, the competitive enterprises with the core competitiveness will also be favored by overseas funds, such as Semir clothing, fuanna and other companies.

Investment proposals for Hong Kong stocks: (1) some of the listed companies in the Hong Kong stock market are relatively solid and competitive, but the valuation is lower than that of the A shares, and the AH discount is obvious. Such enterprises are expected to become the first beneficiaries of the Shanghai and Hong Kong links. Second, there are also better investment value for the areas and varieties of A shares, especially those with more profits, such as Huabao international, sports industry's Chi Mei Group and Anta sports company.